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July 12, 2012

Heidi  Shierholz
 Heidi  Shierholz

Black Unemployment Rate Rises as State and Local Governments Continue Job Cuts

The seasonally adjusted jobless rate for African-American men and women 20 years old and older rose in June partly  because of  the ongoing job cuts by state and local governments an industry blacks once thought was safe from recession and political partisanship.

The U.S. Bureau of Labor Statistics reported on Friday that the unemployment rate was 14.4 percent for African Americans, up from 13.6 percent in May but down from 16.2 percent in June 2011.

The government reported that black men 20 years old and older continue to be burdened with the nation's highest unemployment rate of 14.2 percent, the same as it was in May. Joblessness among black women climbed to 12.7 percent in June compared with 11.4 percent in May. The unemployment rate among black women, however, is lower than the 13.7 percent recorded in June 2011.

African Americans were the only major worker group who experienced an increase in unemployment.
The seasonally adjusted jobless rate for white men and white women was 7.4 percent, the same as it was in May.  June's jobless rate was below the 8.1 percent recorded the same month a year earlier.

The jobless rate in June for white men 20 years old and older was 7.0 percent, the same as it was in March. The unemployment rate in June for white women 20 years old and older was 6.6 percent, down from 6.7 percent in May.

The Hispanic unemployment rate remained at 11 percent in June, and joblessness among Asians was 6.3 percent, but the rate wasn't seasonally adjusted.

Bureau of Labor Statistics officials reported that the unemployment rate remained at 8.2 percent as the nation's non-farm businesses created 80,000 jobs, which is well below the 176,000 jobs created in June that ADP reported last Thursday.

Additional federal aid to state and local governments is particularly important to black workers, who have suffered the biggest proportional losses of good public-sector jobs as state and local governments responded to budget shortfalls with layoffs The Economic Policy Institute, a Washington, D.C.-based non-partisan policy organization, wrote in a paper titled, "Black Metropolitan Unemployment in 2011: Las Vegas' rate rises significantly," that the federal government needs to provide more economic stimulus.

"Additional federal aid to state and local governments is particularly important to black workers, who have suffered the biggest proportional losses of good public-sector jobs as state and local governments responded to budget shortfalls with layoffs," wrote Algernon Austin, the report's author and a Ph.D. sociologist who is Director of the Race, Ethnicity, and the Economy program at EPI.  "While the Obama Administration has proposed providing more aid to state and local governments, conservatives in Congress in Congress have blocked such efforts."

Heidi Shierholz, a Ph.D. labor-market economist for EPI, noted in a report titled, "The labor market is treading water," public sector again has cut jobs.

This drop was somewhat smaller than in recent months; over the prior three months, the public sector has lost 16,300 jobs per month, on average. Since the recovery officially began three years ago in June 2009, the country has lost 627,000 public-sector jobs, an enormous drag that did not weigh on  earlier recoveries. "Once again the public sector shed jobs, 4,000 in June," Shierholz wrote. "This drop was somewhat smaller than in recent months; over the prior three months, the public sector has lost 16,300 jobs per month, on average. Since the recovery officially began three years ago in June 2009, the country has lost 627,000 public-sector jobs, an enormous drag that did not weigh on  earlier recoveries."

On the positive side, professional business services added 47,000 jobs in June with temporary help services accounting for 25,000 of the increase. Employment also rose in management and technical consulting services by 9,0000 and computer systems design and related services by 7,000. Employment in professional business services has grown by 1.5 million since its most-recent low point in September 2009. Manufacturing added 11,000 jobs in June. Motor vehicles and parts added 7,000 jobs and fabricated metals added 5,000 jobs.  Health care added 13,000 jobs and the wholesale trade added 9,000 jobs.

Seasonally adjusted unemployment rate for June based on race and sex

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